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Caught between devil and troubled waters

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Bizarre story of fishers hit by X-Press Pearl disaster

MV X-Press Pearl, which sank in the western Sri Lankan coastal waters in late May, led to huge environmental destruction and losses of fishing livelihoods and incomes. The most directly affected party was the fishing community, from Kalutara to Chilaw, following the imposition of the fishing ban on May 21, 2021, which continues to date, keeping fishers away from their productive environment. An initial payment of Rs. 5,000 was paid to fishing-related stakeholder families, while a part-payment is now being made from indemnities paid for the initial claims. Yet, the human suffering is tremendous and this article attempts at highlighting some of these impacts on fishing livelihoods, which cannot be easily compensated by payments, calculated on the basis of lost incomes. “Things will have to be seen as ‘they are’, not as ‘we are’” (Anais Nin, French Writer).

A 186-metre-long container ship, called X-Press Pearl, registered in Singapore, arrived in Colombo on the night of May 19, 2021 carrying 1,486 containers. On May 20, it was reported that the ship caught fire, which was only 9.5 nautical miles (17.6 km; 10.9 miles) away, north-west of the Colombo Port. On May 25, a large explosion occurred inside the vessel, and by late afternoon containers were dropping from the vessel into the sea. The ship sank on June 2, while it was being towed to the deeper seas, after burning for 12 days. The incident was deemed the worst marine ecological disaster in Sri Lankan history. The ship’s cargo included, among others, 12,085 MT of plastics and polymers, 8,252 MT of chemicals and 3,081 MT of metals. Since the time the ship caught fire, ship debris, burnt goods and plastic pellets washed into the shore in large quantities. Dead fish, turtles, whales and dolphins were found along the western coast and plastic pellets were observed trapped in the gills of fish. While such debris was initially noticed in the Negombo coast, other areas from Kalpitiya up to Matara also reported ship debris, dead fish and turtles, indicating wider spread damage.

Impact of oceanic pollution on fisheries

When various kinds of debris washed up on the coastal areas of the Western Province and large numbers of dead fish were found, the Department of Fisheries decided to ban fishing in the coastal districts of Kalutara and Negombo on May 21, 2021, which continues to date. The major impact area was demarcated as the coastal strip between Wadduwa (FI division) of the Kalutara District to Kochchikade (FI division) of the Negombo coastal district.

Fishing community actors affected by disaster

The coastal fishing fleet of the three districts, that cover the impact area, consists of 51 multiday craft (IMUL), 204 day boats with inboard engines (IDAY), 2,504 FRP boats with outboard motor (OFRP), three Mechanised traditional boats (MTRB), 1,905 Non-mechanised traditional boats (NTRB) and 75 Non-Mechanised Beach Seine boats (NBSB), totalling 4,612 craft. Altogether 12,731 fishers were affected by the ship disaster (both skippers and crew). Apart from those who are directly involved in fishing, there are large numbers of diverse stakeholders, fish value chain actors, involved in ancillary services and other fishing related activities, who include fish vendors, sellers, dry fish vendors, dry fish producers, ice producers, ice distributors, fibreglass repairers, engine repairers, fuel distributors, net menders, bait producers, vessel cleaners, food suppliers, dry fish sellers on bicycle, beach seine helpers, landing site helpers, divers, women engaged in marketing and fish processing and more. Altogether 3,995 such actors were identified in the HIA, which added up to a total of 16.727 affected persons. Assuming a family size of 3.8 persons (in 2020), the total affected population is estimated as 63,563 (this study).

Shocks and threats

With the enforcement of the fishing ban on May 21, 2021, which prevented fishers from going to the sea, especially because of the mounds of ship debris scattered in the coastal waters posing threats of damage and loss of fishing equipment on the one hand, and the uncertainty of the impact of ship’s cargo on fish, on the other, the fishing community suffered several shocks overnight. These included, loss of income, loss of supplementary income (female employment), drop in demand (drop in consumption of fish for fear of contamination), loss of assets (gear), well-being loss and loss of traditional sources of insurance (because the fishing ban affected all [collective shock] no assistance was available within the community).

COVID-19 impact

The ship disaster hit the coastal fishing community of the western coast, at a time when they were suffering from the COVID-19 pandemic. During the first wave of the pandemic, all links in the fish value chain were seriously affected, dismantling almost all of them; fish landings, marketing, distribution and processing. Due to the imposition of curfews, low demand, low prices and disruption of the marketing system, fishing was seriously affected (45 to 65 percent less than normal). The second wave of the pandemic hit the country on October 4, 2020, when COVID-19 cases were reported from a private garment factory (Brandix) at Minuwangoda in the Gampaha District. Following this cluster, emerged another COVID-19 cluster at the Peliyagoda fish market when 19 cases were reported on October 21, 2020. Many people believed that fish was a Coronavirus carrier and stopped consuming fish for fear of COVID-19 infection. Consequently, prices came down drastically. Quite alarmingly, before the affected population started to recover, the third wave of COVID-19 hit the country, which rose to prohibitive levels after the Sinhala and Tamil New Year, in late April, with deaths rising to 198 per day ( August 20, 2021). While the weak economy and stagnant incomes hit the poorer groups badly, fishing restrictions and poor demand for fish resulted in reduced fishing incomes and livelihood threats to fishers, especially the small-scale fishers who cater to the local market.

The X-Press Pearl ship disaster hit the fishing community at a time when they were confronted with the vagaries and threats of the COVID-19 pandemic.

Market impact

Analysis of price behaviour, which took into account average weekly prices in May and beginning of June 2021, revealed a drop in the wholesale prices in the fourth week of May when the impact of the X-Press Pearl disaster was felt. Dead fish and other marine animals washed up on the shore, along with tons of debris, which contained, among other things, huge amounts of plastic pellets. Later, it was made known that the ship’s cargo contained certain hazardous chemicals, which caused a significant drop in fish consumption, which further reduced wholesale prices. Low demand is also a result of loss of employment and income by those self-employed groups. In respect of the retail trade, many retail outlets remained closed and normal distribution (by motorcycle traders, bicycle traders) was also disrupted. Only a few retailers were present to distribute fish. This led to increases in consumer prices of fish. At a time when wholesalers were complaining of low fish prices, consumers were complaining that the price of fish was too high. Communication with officials of the Fish Wholesalers Association at Peliyagoda fish market revealed that nearly 60 percent of the fish, such as skipjack, were sold for dry fish making, due to lack of demand for fresh fish.

Fishing community’s response to ship disaster

The fishing ban which was imposed on May 21, 2021 posed severe livelihood threats to the affected families. Nevertheless, a payment of Rs. 5,000 was made, by the government, to affected families, which was the payment made to all those self-employed families hit by the COVID-19 pandemic. This amount was equal to 10 percent of the mean monthly expenditure of an average Sri Lankan household in 2016 (which was Rs. 54,999). Since then a payment has been channelled to fishing communities only once (recently), from monies received from the ships insurance companies (an interim payment of Rs. 720 million), of which about Rs. 400 million has been allocated to fisheries. Yet, the process has not been completed. The long payment intervals and the smaller size of the payment would have caused mammoth adversities for households striving hard to make the ends meet.

Of course the immediate response of the fishing community was to reduce consumption, tightening the belt, which often puts more weight on women fisher folk, who have been traditionally accustomed to shouldering the burden of consumption shortfalls in ensuring that men are kept physically fit to carry out fishing operations. Nevertheless, food insecurity could be only one of the immediate impacts of the ship disaster, which often leads to nutritional insecurity, which has more injurious impacts on the nutrition of children. A quite painful impact would have been the inability of affected households to pay regular bills (house rent, electricity, water and goods taken on installments). In a study carried out in 2020 by the author, it was revealed that debt repayment obligations of an average fishing household to be around Rs. 20,000 per month (Samudra Report, No. 85). Of course, such debts will accumulate if a fishing household has no other source of income, which is usually the case. Parental care too is an issue because parents usually live with children in their old age, a practice that is quite characteristic of Sri Lankan society. Expenses related to such care-giving could be excessively high. Cries of children to have a bite of sweets or a lick of ice cream would remain ‘unheard’. The whole family will be cut off from involvement in leisure activities, films, pleasure trips and social and religious obligations. All this could mean colossal psychological stress on all members of the family, which cannot be expressed in value terms.

In the absence of insurance markets for fishing related risks, people resort to credit. In fishing societies, exchange of small loans is very common. Because of high catch variability, incomes of all fishers do not correlate. One who is lucky will offer part of his earnings to an unlucky one, knowing that one is not lucky or unlucky every day. However, the ship disaster hit everyone equally and the fishing community’s insurance function was lost. In such a context people tend to mortgage jewellery, sell assets or borrow from outside money lenders, who sometimes charge exorbitant rates of interest, which could be as high as 180 percent per year. Since the day the fishing ban was imposed (May 21, 2021), debt repayments (interest and principal on loans) of fishing households would have accumulated adding to the existing pressure on household chores, leading to great human suffering.

Contextual issues: Blue justice

In analysing the impact of the ship disaster on the fishing community, one cannot refrain from underlining the context in which small-scale fisheries take place. Some of the most notable impacts observed recently have been the injustices caused by the process of Blue Economic Growth. Complaints of exclusion of communities from development related decision making, absence of any community consultation in implementing development projects, coastal land grabbing by tourism interests (land tenure issues) and marginalization of small scale fishers, were heard from all around the country. Conflicts among fisheries and tourism stakeholders have risen to prohibitive levels. Many fishers have lost their beach seining sites, craft anchorage sites and fish drying sites, first, as a result of climate-induced sea erosion and second, as a result of land grabbing by tourism interests. While coastal waters traditionally provided livelihoods to thousands of small-scale fishers who had customary rights to fish resources in such waters, today the ‘small fry’ has been chased away and the coastal waters have become the arena of sea sports and leisure. The public beaches have become private and some beach access roads have become private property of tourism stakeholders. These are all injustices emerging from the unregulated growth of the blue economy which have pushed the small scale fishers to the margins.

Evidently, there is tremendous suffering among diverse fishing related households. Livelihoods and incomes are lost, ill-being is quite pervasive, food insecurity and nutritional insecurity is on the rise, drops in consumption and expenditure is causing misery, households are unable to attend to parental and child care and debts have accumulated. The government has tried to redress the situation by providing the affected households with Rs. 5,000 initially and now by making an interim payment. Unfortunately, there have been huge delays in making these payments due to delays in making claims and payment of indemnities by the ship’s insurance agents. The longer the delays in payment, the higher would be the human suffering. The fishing ban will continue until the debris is cleared from the bottom of the sea by the responsible party, and thus the agony and misery will continue to grow. Two things are worthy of mention at this juncture. First, what has been paid so far has been hardly sufficient to meet the family subsistence needs. Apart from making a payment equal to lost daily wages, a premium that covers the various costs incurred by the affected parties in resorting to borrowing, in mortgaging assets and psychological stress, will have to be paid. Second, it is of paramount importance in developing strategies to improve the resilient capacity of fishers to external shocks, which would involve, among other things, strengthening community sources of insurance (fisheries cooperatives, coop savings), promoting self-insurance strategies (savings, alternative livelihoods, women employment), and addressing social injustices caused by the process of Blue Economic Growth.



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The heart-friendly health minister

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Dr. Ramesh Pathirana

by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka

When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.

Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.

Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.

Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.

The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.

This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.

Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.

This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.

Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.

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A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

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Fr. Aloysius Pieris, SJ was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera on Nov. 23, 2019.

by Fr. Emmanuel Fernando, OMI

Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.

It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.

Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.

Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.

Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.

Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.

Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.

Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.

In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.

Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.

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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

Sri Lanka-Singapore Free Trade Agreement

By Gomi Senadhira
senadhiragomi@gmail.com

“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech

Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).

It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.

Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.

However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.

1. The revenue loss

During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.

The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”

I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.

As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!

Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”

If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.

Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.

Investment from Singapore

In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.

And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.

I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”

According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!

What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).

However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.

Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.

That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.

The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?

It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.

As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.

(The writer, a specialist and an activist on trade and development issues . )

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